BUZZ-COMMENT-EUR/USD's resilience during conflicting tariff reports may comfort bulls

Jan 6 (Reuters) - EUR/USD swung widely Monday but ultimately bulls may be comforted by the fact that it held onto significant gains even after President-elect Donald Trump refuted a euro-positive tariff report that had fueled the rally.

The Washington Post reported Trump's aides are exploring a narrower tariff strategy than earlier expected, helping EUR/USD pierce the 21-DMA on the way to a four-session high.

The pair gave back some gains after Trump wrote on Truth Social that the story was "Fake News".

EUR/USD reacted bearishly to Trump's post but still traded up nearly +0.80%.

The pair's resiliency may be driven by economic data out of Europe that may lead the ECB to become less dovish.

Final revisions for December euro zone S&P PMIs came in higher than expected and German inflation increased more than expected.

Meanwhile U.S. December S&P Global PMIs and November durable goods orders were revised downward.

The data helped German-U.S. spreads US2DE2=RR trade at their tightest since early November as investors leaned towards the Fed and ECB policies converging slightly.

Investors will turn their focus to U.S. data this week, including November JOLTS, December ADP and U.S. payrolls and December ISM manufacturing PMI.

Data indicating slowing jobs and economic growth could lead investors to price in deeper Fed rate cuts and tighter spreads.

EUR/USD shorts could get squeezed further.

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(Christopher Romano is a Reuters market analyst. The views expressed are his own)

((christopher.romano@thomsonreuters.com;))